After burning an amount of impious cash in recent years, not to mention production errors, Tesla during the September quarter of 2018 finally managed to generate profits. The figure itself was not astounding: only about $ 312 million in net revenue when the dust settled, but the fact that Tesla proved that it could actually generate profits was a feat that many in the auto industry claimed was impossible.
Interestingly, however, Tesla earlier this year was on the verge of losing everything. During an interview with Axios that was broadcasted to HBO over the weekend, Tesla CEO Elon Musk explained how Tesla was spending large amounts of cash as part of its larger effort to drive the production of Model 3. If you remember, for many months the Model 3 was plagued by several production problems, a situation that goes back to Tesla's excessive dependence on automation.
Specifically, Musk said Tesla at one point this year was only a few weeks away from "death," while engineers worked and tried to increase production.
"Tesla really faced a serious death threat due to the Model 3 production ramp," explained Musk. "Essentially, the company was bleeding money like crazy and if we did not solve these problems in a very short period of time, we would die." And it was extremely difficult to solve them. "
By the way, you might remember that Musk was working an insane number of hours as part of a larger team that seeks to boost the production of Model 3. Last summer, for example, Musk said he had been working up to 120 hours a week.
"It is not recommended for anyone," Musk said in reference to the impact his crazy program had on his personal life and his physical and mental health. "I just did it because if I did not, there was a good chance that Tesla would die."
Of course, the question that is looming is whether Tesla can replicate the success he saw in the last quarter steadily.
Image source: Tesla